A currency depreciation would _____ net exports, and therefore ___________ aggregate demand.
A)increase; increase
B)increase; decrease
C)decrease; decrease
D)None of the above is correct.

Question

Quizplus · Accepted Answer

A currency depreciation makes a country's exports cheaper and imports more expensive, which increases net exports. This increase in net exports raises aggregate demand.

A Currency Depreciation Would _____ Net Exports, and Therefore ___________

A Currency Depreciation Would _ Net Exports, and Therefore _______